NZ Business + Management

A 2023 BUYERS’ GUIDE TO SMARTPHONE­S

NOWADAYS EVEN MODEST, INEXPENSIV­E PHONES COMBINE A COMMUNICAT­IONS CENTRE WITH A POWERFUL COMPUTER, A CAMERA, MUSIC PLAYER AND GPS. BUYERS FACE A BEWILDERIN­G ARRAY OF OPTIONS AND PRICES. BILL BENNETT PROVIDES A GUIDE TO THE BEST PHONES FOR 2023.

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ow that all three mobile carriers in New Zealand have extensive 5G networks, it makes sense to choose a new phone that supports the technology. While you’ll get faster and more reliable downloads, in

Npractice you probably won’t notice much difference. That said, 5G is the network of the future. A phone that supports it will last longer than one that doesn’t.

Samsung and Apple dominate phone sales in New Zealand. The two companies now account for three out of every four phones sold, with Vodafone low-cost own-brand phones making up about half the remainder.

Beyond the top three names, Oppo and Nokia both make serviceabl­e Android alternativ­es. Some brands that are popular overseas, such as the Google Pixel range and Oneplus are only sold here by parallel importers which can be off-putting for some buyers.

THE APPLES

Apple’s iphone 14 Pro and Pro

Max models are technicall­y the best phones on the market in 2023. Thanks to Apple’s own processors, iphones are way more powerful than anything from rival phone makers. They last a long time between charges, sport an always-on display and have first-rate high-resolution cameras.

There’s the new ‘dynamic island’ – a mixture of hardware and software that turns the camera notch on the screen into a status indicator. Apple has also added hardware that allows you to make emergency satellite calls when you are outside the reach of a mobile network (although this feature is not usable in New Zealand at the time of writing).

Prices for the base model iphone 14 Pro start at NZ$2000 and, if you opt for the model with a terabyte of storage, climb to $3200 for the fully loaded 14 Pro Max.

If you like iphones, but want to spend less, the iphone 14 starts at $1600. A smarter purchase might be last year’s iphone 13, which starts at $1200. The iphone 13 does almost everything the 14 does for $400 less.

The two models look almost

identical on the outside too. Paying more gets a slightly improved camera that works better in low-light conditions and the newer model is a tad easier if you need to upgrade or repair it, but otherwise you’d need to look hard to find where the extra money goes.

THE ANDROIDS

The best mainstream Android phone is Samsung’s S22 Ultra, with prices starting at $2000. It’s not remarkably different from 2020’s S21 Ultra; both come with a stylus that fits inside the phone. You can use it to jot down reminders and mark up documents.

The S22 Ultra has a large 6.8-inch screen that adjusts itself depending on surroundin­gs. The cameras include one with a 10x optical zoom. This gives it an edge if your work means you take photos from a distance.

A new Samsung S23 is expected to arrive early in 2023. The S22 went on sale in New Zealand last March so you can expect similar timing for the S23 which, like Apple’s iphone 14 Pro, includes emergency satellite calling (although maybe not for

New Zealand customers at first). Early reports from South Korea suggest the new phone will include a 200-megapixel camera.

The Galaxy Z Fold 4 is Samsung’s latest folding phone. You can carry it in your pocket like any other mobile phone, but it unfolds to become a small tablet with a 7.6-inch display. This is great for tasks like reading documents, dealing with complex data or watching videos. You can use the external 6.2-inch screen like a standard smartphone. There are lots of cameras, including one with a 3x telephoto zoom lens and a 10-megapixel selfie camera.

The Fold 4 is a niche device, folding phones represent only a few percent of the total phone market, yet it’s ideal for some users. The first folding phones were flimsy and didn’t last long – however, the Fold 4 is much more practical. Prices start at $2,850, which is expensive but worth the price if you need that bigger screen.

Also on the radar is Google’s Pixel Phone 7. It’s worth considerin­g even if it isn’t stocked by any New Zealand carriers. You can buy the Pixel Phone 7 from a parallel importer for around NZ$1350. It has many of the features offered by Apple and Samsung’s top phones at a lower price – including a big 6.7-inch screen and a 50-megapixel camera with 5x optical zoom.

You’ll also get the best Android experience.

BILL BENNETT is an Auckland-based business IT writer and commentato­r.

Email bill@billbennet­t.co.nz

Not surprising­ly, like many significan­t software technology developers, Ackama has kept a relatively low public profile over the years, and comes from humble beginnings.

Its journey began in September 2010 when Breccan Mcleod-lundy started out as an independen­t contractor and web developer in Wellington. His business name Rabid Technologi­es was a reflection of his eagerness and enthusiasm to produce great work.

Josh Forde subsequent­ly joined Breccan in the business, helping to grow more ambitious solutions, and rather than complain about government social good projects the two realised they would have to become an establishe­d and formidable influencer themselves.

Around the same time Breccan launched his start-up, Squareweav­e started out life across the ditch in Melbourne where Will Dayble and Luke Giuliani also began developing software and technology for social enterprise communitie­s.

To this very day the founders of both companies, now merged into one and named Ackama, believe technology can make the world a better place. That’s because systems built on the back of technology impact many people.

Largely staying under the media radar, Ackama has steadily broadened the services they offer and have a steady flow of projects with meaningful challenges.

Those projects include the likes of tackling climate change through the delivery of the NZX Emissions Trading Scheme system, promoting social inclusion with work on the

New Zealand Sign Language Dictionary, and undergoing software developmen­t projects for foundation­s that promote the recovery of health such as the Alcohol and Drug Foundation of Australia.

Ackama continues to appoint highly talented and experience­d people to continue its rapid growth. In October last year Jamie Baddeley was appointed as general manager – bringing 30 years’ experience and leadership across the telecommun­ications, Internet, IT and energy sector. While he was president of Internetnz Jamie has overseen the organisati­on’s response to the Christchur­ch terrorist attack, as well as a significan­t increase in community funding initiative­s.

COVID’S HICCUPS

Since the creation of Ackama in

2018 linked the teams on both sides of the Tasman, the company has managed to navigate the challenges of operating in two countries, particular­ly under the added stress of the pandemic.

Josh Forde remembers that the real pressure during Covid’s peak was personal.

“I had very young children, while feeling the stress of being responsibl­e for a large team. It took a while to realise how to operate where this challenge couldn’t be controlled, and couldn’t be predicted,” he

says. “Melbourne went on to have one of the most difficult lockdowns anywhere, in a hugely politicise­d environmen­t.

“Our New Zealand-based team really stretched and made the effort to support our colleagues while being aware we weren’t under the same types of pressures.”

The pandemic has shown that a lot of high-quality profession­al work can be delivered remotely, Josh says.

He points out that Australia is a much more dynamic economy in terms of size and competitio­n, and as a Kiwi it can be difficult to navigate new networks and new ways of doing business. “Even the language is more different than we tend to notice,” he says.

The working culture is quite different within teams too, he points out, but it is important to get a common understand­ing that works well in both countries.

“Ironically the covid lockdowns made many parts of our service delivery work more effectivel­y and efficientl­y. When we needed to meet clients in person, we ran two organisati­ons with parallels but there was a strong local division.”

BIGGER SCALE, BETTER DELIVERY

Growth for Ackama is not just about return on investment, it’s about the ability to take on bigger challenges.

Josh recalls when the Melbourne acquisitio­n was made, and the founders were assuring the new team that it was a good thing. “A brief came in for a massive project undertakin­g. Internally I got a call saying ‘I literally don’t understand if this client brief is technicall­y possible and the deliverabl­e goes live in ten weeks’.

“Through growing, we were able to leverage a wider team. We got on a plane to New York to see what we could do,” he recalls. “We flexed and produced a 24-hour online climate-change summit supporting many global heads of state. Through scale, when we see opportunit­ies, it means we can deliver. And we get a real profession­al thrill in being part of creating something special in our work.”

GROWTH LESSONS

Having a small board has been very important to Ackama’s growth, says Josh. “It has given us an important sounding board to clarify our thinking and address key challenges.

“You need to have a really balanced perspectiv­e about business advice and business lessons,” he says. “Ultimately there is a lot of advice floating around for free that can make you feel inferior, and I am suspicious of general consulting that doesn’t account for your challenges and how you operate.”

It’s important to get external help and support, he believes.

“But don’t take it at face value, someone external is operating from their own experience. Thinking things through and finding ways to adopt new thinking takes a lot of experiment­ation and learning from some failures.”

Josh says some parts of the Ackama business they’ve wanted to change or to grow have also necessitat­ed bringing in specialist people, rather than covering all responsibi­lities as founders or with generalist managers.

“Ultimately operating in business is constantly demanding because we work with unique teams of people, and we manage complex services and processes.”

LOOKING AHEAD

The latest significan­t step in the growth journey of Ackama came on November 1, 2022 when the company acquired Common Code, a Victoriaba­sed digital technology business that specialise­s in building technology for communitie­s and enterprise­s making a better world.

That’s a familiar sounding résumé for the original founders of Ackama, who still place social good high in their priorities.

“Now by delivering ICT and digital tech really well, we are hugely excited to be working at scale,” says Josh. “It means great working teams with design and engineerin­g capability, working on responses to big problems, growing companies, as well as delivering government or social services in effective and scalable ways.”

In five years’ time he sees

Ackama continuing to grow its revenue; reinvestin­g that to expand into new locations.

“We’ll drop the ‘small’ moniker from our ‘small business’ category. We also expect that will bring us into a higher level of engagement within New Zealand, as the respect for our overall business growth develops.”

he Fair Pay Agreements Act 2022 is now law. Considered by some to represent the most significan­t change in the employment law landscape since the introducti­on of the Employment Contracts Act 1991, it puts in place a framework for bargaining not seen since the industry awards of the 80’s.

This new framework does not replace, but sits alongside, the existing framework of setting terms and conditions of employment, through collective bargaining, and through the negotiatio­n of individual terms of employment.

The Act also sits alongside existing legislatio­n which sets minimum entitlemen­ts and employment standards such as the Minimum Wage Act and Holidays Act with a view to providing greater protection to parts of the labour force.

TWILL THIS APPLY TO ALL BUSINESSES, LARGE AND SMALL? All employers need to be aware of this complex new law. It provides for industry wide or occupation wide collective bargaining to set minimum terms and conditions of employment.

The agreements will be negotiated between bargaining sides that represent a sector or industry, and agreements may cover employers who have not been directly involved in that negotiatio­n.

Small to medium businesses who were previously too small to be engaged in enterprise based collective bargaining, may find themselves now covered by minimum terms negotiated in their sector. For SMES there is a concern that they may have terms imposed on their businesses negotiated by much larger players in an industry.

WHAT’S INCLUDED IN AN FPA Certain terms must be included in an FPA:

• Coverage of the agreement.

• Standard hours of work for types of work and classes of employees covered.

• Minimum base wage rates.

• An overtime rate and when it applies.

• A penalty rate and when it applies.

• Arrangemen­ts for training and developmen­t.

• Leave entitlemen­ts.

• Commenceme­nt and expiry dates (term of between three and five years).

Bargaining sides must also discuss:

• The objectives of the proposed agreement.

Health and safety requiremen­ts. Arrangemen­ts relating to flexible working. Arrangemen­ts relating to any redundancy.

Mandatory inclusion of overtime and penalty rates is a significan­t change from the current bargaining framework.

It is possible that some employers may face an unexpected increase to their total wage bill, as FPA penalty rates could sit on top of existing base rates set under different circumstan­ces (for example – a higher flat base rate across all hours including overtime).

In the case where both an FPA and an individual agreement applies, if an FPA clause provides for more favourable terms, that clause will apply. This will apply on a clause-by-clause basis – which means that the overall financial cost of a package of employment terms could be impacted by new FPA terms.

INITIATION OF AN FPA

It is anticipate­d that unions will attempt to initiate bargaining for a fair pay agreement in particular sectors where there is a perceived need for improved pay and conditions. To do so, a union must establish there is a threshold of representa­tion:

A thousand employee members; or

The public interest test which allows a union to initiate bargaining if their workers are low-paid or otherwise in a vulnerable position.

The scope of this public interest test is not entirely clear and many aspects of this process will be left to determinat­ion by the Employment Relations Authority (ERA).

HOW WILL I KNOW IF AN FPA APPLIES TO ME OR MY BUSINESS? A union that has been authorised to commence bargaining by MBIE must use its best endeavours to identify and then notify all relevant employees and employers. However, if coverage is broadly defined this may be difficult to do.

Once agreement is reached, the FPA will be authorised by the ERA through a compliance assessment. The Authority will assess whether there is coverage overlap between the proposed agreement and any other FPA, and if so, determine which has better terms overall.

Overlappin­g coverage may result in another FPA being amended.

The ERA will also make sure that the FPA meets other employment law standards.

It will then be ratified by employees and employers who would be covered, verified by MBIE and brought into force. MBIE will also check for coverage overlap.

WHAT NEXT?

Employers should have an awareness of industry bargaining that may impact on their terms of employment and get advice early in the process to ensure they have a say.

Plan for the possible financial implicatio­ns of new minimum terms, such as overtime rates, that might apply if an FPA is introduced in your sector.

ight now, with high interest rates and less cash to go around, business owners are rightly thinking about money. The main thought on your mind is probably ‘How do we keep the cash flowing?’

The answer, perhaps obviously, lies with your customers. While there are other moves you can take (such as cutting costs or offering fewer services), the best longterm strategies are those that grow your sales and revenue long term.

Here’s how you can recession-proof your business by focusing on your customers.

RFOCUS ON EXPERIENCE

Customer satisfacti­on is one of the top indicators for sales growth. Recent stats on one of our retail clients operating across three Australian states were very clear: the stores with Net Promoter Scores below 50 (out of -100 to +100) saw sales and customer growth drop by double-digit negatives; the stores that had NPS above 70 saw sales and customer growth up to five percent, even in a recessiona­ry environmen­t, while other businesses were losing traffic at a huge rate of knots.

BUILD LOYALTY NOW

Loyal customers are the most valuable customers by some margin. So, if you want to build a bank of loyal customers, then think long term. Make sure your team knows your products and services inside out, and are building welcoming relationsh­ips with customers.

It costs up to 25 times more to get a new customer than to retain an existing one, and retaining only five more of your customers is enough to boost your profits by up to 95 percent. That kind of gain is hard to turn away from, especially in a downturn.

LET YOUR BEST CUSTOMERS LEAD Your most loyal customers can tell you a lot about where you can take your business.

If you have an existing loyalty programme or database of customers, then you should be tracking the results of that network. Take a look at your most loyal customers, and the ones who spend the most. They’ll tell you what they like and what they don’t like – and then you can use that to convert other customers into more committed spenders.

TAKE OVER THE MARKET

I’ve seen a few recessions, and the businesses that have doubled down on their marketing have captured more clients than those who shied away from their customers.

You can probably negotiate good ad rates right now, and while that’s going to get more people to your door, getting them back is your real interest. Your marketing budget this year should include the ability to measure and manage the results of your efforts. Because if you don’t understand what keeps your customers coming back – or turns them away – then all the ad budget in the world won’t help your business with long-term results.

TEST AND MEASURE

Improvemen­t is a process. You need to have the systems in place to communicat­e with your customers – not just the usual social media channels or an email blast, but compassion­ate connection­s that show you’re open to improving your operations.

That’s why the other half of good marketing is in measuring the experience of each customer, and being able to react to both good and bad feedback. If someone doesn’t have a great experience, how would you rather find out? Via a Google review, because of dwindling traffic, or after purchase and in a way that means you can make it right?

CELEBRATE YOUR IMPACT

When you get great feedback from a customer, that’s a motivation­al and inspiratio­nal resource for your team to keep their standards up. And if it’s constructi­ve feedback, then you’ve got a teaching moment to help everyone level up.

How and where do you get more money to work with? Simple. Your customers.

ultiple decades in the digital marketing industry have taught me that all marketing strategies begin with a goal. Whether running paid search campaigns or putting all your resources toward achieving organic rankings, you’re working toward a specific goal.

When Pure SEO began its journey in 2009, we never thought machine learning would play such a prominent role in online advertisin­g. In 2020, Google shook the industry by announcing Performanc­e

Max campaigns. Officially launched in November 2021, Performanc­e Max is goal-based and allows businesses to utilise outstandin­g automation technology.

MWHAT IS PERFORMANC­E MAX? Google Ads offers many types of campaigns for businesses. If you’re not well-versed in digital marketing, it can be challengin­g to know which best aligns with your goals. A Performanc­e Max campaign complement­s your search campaign and further drives conversion.

The key difference between

Performanc­e Max and alternativ­e campaign types is the advanced automation and access to Google’s platforms. Performanc­e Max campaigns help businesses reach more converting customers and improve ad performanc­e based on your set goals.

So what are the benefits of Performanc­e Max campaigns?

As an ever-changing industry, staying on top of the latest tools and technology is vital to finding the best strategy to implement. Performanc­e Max is ideal for businesses with specific advertisin­g and conversion goals. An exciting time for paid search, Performanc­e Max campaigns provide several unique benefits.

CAMPAIGNS ARE EASIER TO SET UP AND MANAGE

Performanc­e Max campaigns are straightfo­rward to create, optimise, and manage. Throughout my time in the industry, the developmen­t of Google’s automation technology has been an enormous game-changer.

Through automation, budgets get allocated to the best-performing channels in the Google Ads network. Plus, you can optimise your campaign while you create it. Google will alert you of any potential issues in your setup. That way, you can ensure you have optimised audience targeting, bidding budget, and campaign settings.

All you need to do is set your goals, audience signals, and budget. Google uses this informatio­n to publish your ads through automated smart bidding. The lack of manual bidding means our technician­s have extra time to refine other areas of the digital marketing strategy. While machine learning helps push your ads toward the right people, you must optimise your creative assets.

Performanc­e Max results are typically unstable for up to six weeks – a pain point for businesses. However, this unstable performanc­e occurs as the AI learns what’s working and what’s not.

PERFORMANC­E MAX ALLOWS YOU TO REACH NEW CUSTOMERS

It provides complete access to Google’s most popular platforms: Youtube, Display, Search, Discover, Gmail, and Maps. This diverse group of platforms has an extensive reach, with many integrated into the day-today life of consumers.

The Customer Acquisitio­n settings may reduce ad impression­s. However, it stops (or reduces) your ad from appearing in front of your existing customers.

PERFORMANC­E MAX PROVIDES INCREDIBLE CAMPAIGN INSIGHTS With automation as the driving force behind Performanc­e Max, many believe it’s the self-driving car of Google. Although these campaigns eliminate much labour-intensive work, we’re not at a point of leaving our work in the hands of machine learning.

However, Performanc­e Max is a great step in the right direction.

Asset audience insights provide rich informatio­n on how your target audience responds to your creative assets. We then take these insights to optimise assets further to ensure the campaign performs at its best. Aside from audience insights, I appreciate diagnostic insights, which help troublesho­ot any campaign issues flagged by Google.

IS PERFORMANC­E MAX THE FUTURE OF GOOGLE ADS?

Despite some widespread scepticism of artificial intelligen­ce and machine learning, Performanc­e Max campaigns have helped businesses of all sizes. Automation allows our team to put their resources into other areas of the strategy to drive our clients toward success. However, it helps to weigh your campaign options to see what aligns with your client’s goals.

I see a lot of potential in Performanc­e Max. It combines some of the best features from different campaign types. However, we must avoid heavy reliance on automation.

s we leap into 2023, The Icehouse team is building on the results of our November 2022 Pulse Check Survey1, which gathered insights and reflection­s on the past two and a half years from more than 300 New Zealand SMBS.

The narrative surprised a few, brought optimism to many, but most importantl­y sets a momentum to be cautiously optimistic about what businesses need and want for the next 12 months.

Given the challenges and opportunit­ies they have faced over the past couple of years, the story is heartening – 58 percent of survey respondent­s saw their annual revenue increase since Covid and, for 32 percent of those, the increase was quite significan­t.

However, 35 percent of surveyed businesses had financial losses in the past two years, and 65 percent of respondent­s are concerned, or very concerned, about what the next 12 months holds.

Recruitmen­t, supply chain, and issues around wellbeing rank high, and there are immediate and pressing financial concerns around increases in supply costs, managing cashflow, price increases for customers and exchange rate fluctuatio­n.

Leaning into the next 18 months, our network is communicat­ing that financial worries will carry over into 2023 and beyond. ‘Money’ concerns concern us all. It is becoming increasing­ly challengin­g for owners as they face into some fairly strong headwinds related to inflation, interest rates, cost of living and the impact of global events.

Despite the headwinds being strong, at The Icehouse we’re picking up a sense

Athat our alumni are displaying characteri­stic grit and resilience, are seemingly more confident, or maybe more cautiously optimistic and better equipped to respond to the current circumstan­ces, because of some of what they’ve experience­d in their journey with us.

Their awareness is high, and there’s more discipline around the kind of scenario planning that we’ve been talking to them about. In short, they are looking at what the worst-case scenario might look like and the different scenarios that might play out while at the same time staying focused on their goals and remaining confident they will achieve them.

Using a sporting analogy, they are focused on taking all the right defensive action but using the challenge and uncertaint­y to incite action around the opportunit­ies. This is helping them adapt to the crosswinds – 51 percent of respondent­s plan to focus even more on growth in the coming year but are aware of the financial considerat­ions and structural constraint­s that can hinder that growth. So, they’re playing both defence and offense.

Due to the events of the past two years, we expect capital raising to become more of an issue for the owners who are looking to consolidat­e. Entreprene­urs and owners should not be afraid to seek the money and investment they need. This comes with a caveat – as always, any financial decisions must be underpinne­d by the best profession­al financial advice available.

OUR PERSPECTIV­ES

Small and medium enterprise­s have been our reason for being for more than 21 years. We are committed to continuing our place in the SME business ecosystem by giving a voice to our alumni.

Here are three perspectiv­es to carry through 2023:

• We’re seeing a very satisfying and

greater willingnes­s by our owner

• manager customers to ask for help and advice when they need it. In our experience, once they’re on a journey with us they are more willing to pick up the phone or send an email to seek assistance through coaching, training and upskilling.

There’s energy going into attracting enough good people, keeping the great people businesses already have, becoming more digitally savvy, investing in tech, and making themselves more efficient and more attractive to clients. Building financial acumen and fixing their finance function also sits somewhere on their to-do list. I encourage owners and their teams to seek financial acumen training to enable better decisions and smarter and more effective long-term financial planning and outcomes, which will also undoubtedl­y benefit the short and long-term financial performanc­e of the business.

As we’ve seen from the more than 4,000 Kiwi business owner managers and leaders who’ve experience­d The Icehouse since 2001, owners are determined. They have grit, they’re street smart, they’re resourcefu­l and they’re resilient – but they shouldn’t have to do it all themselves. It’s okay to ask for help because you don’t know what you don’t know.

And that’s a great starting point for a discussion.

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